“Short-term plans serve an important function for consumers
transitioning between jobs or with other temporary coverage needs, which
is how most people continue to use them,” said eHealth CEO Scott
Flanders. “But we’ve also seen that, as premiums rise, many people turn
to short-term health insurance because they simply can’t afford
ACA-compliant coverage.”

eHealth’s report, Short-Term
Health Insurance: Value, Benefits and Cost, includes an analysis of
the costs and benefits covered under short-term plans, an examination of
the impact of the 2017 rule limiting coverage to no more than 90 days,
and results from a survey of nearly 1,000 short-term policyholders. Key
findings include:

Demand for short-term plans has steadily increased since the ACA’s
implementation: Short-term applications accounted for 57 percent
of all combined short-term and major medical plan applications
received by eHealth in 2017, up from 47 percent in 2016.

Need for temporary coverage and affordability drive interest in
short-term policies: Sixty-one percent of survey respondents said
they chose short-term policies primarily because they needed coverage
for a limited period, while 27 percent did so because it was more
affordable than other options.

One quarter chose short-term policies because they missed open
enrollment: Twenty-six percent of respondents said they bought
short-term coverage, in part, because they had missed open enrollment
under the Affordable Care Act.

Short-term plans are becoming more popular among older consumers:
Since 2015, the share of people between the ages of 45 and 64 buying
short-term plans has increased from 21 percent to 25 percent.

Most short-term policyholders consider ACA coverage first: More
than half of respondents (52 percent) said they considered buying an
ACA-compliant health plan before turning to short-term coverage. About
half (49 percent) believed they would not have qualified for
government subsidies under the ACA.

Half of policyholders say they would be uninsured without access to
short-term coverage: Fifty-one percent of policyholders said they
would not have health insurance without short-term coverage; only 12
percent said they would enroll in ACA-compliant major medical plans if
short-term policies were not available.

Nearly three-in-ten short-term policyholders use their coverage:
Twenty-eight percent of eHealth survey respondents said they received
medical care while covered under a short-term policy, most commonly
for a sick visit to the doctor’s office.

eHealth, Inc. (NASDAQ: EHTH) owns eHealth.com, a leading private online
health insurance exchange where individuals, families and small
businesses can compare health insurance products from brand-name
insurers side by side and purchase and enroll in coverage online and
over the phone. eHealth offers thousands of individual, family and small
business health plans underwritten by many of the nation's leading
health insurance companies. eHealth (through its subsidiaries) is
licensed to sell health insurance in all 50 states and the District of
Columbia. eHealth also offers educational resources, exceptional
telephonic support, and powerful online and pharmacy-based tools to help
Medicare beneficiaries navigate Medicare health insurance options,
choose the right plan and enroll in select plans online or over the
phone through Medicare.com (www.Medicare.com),
eHealthMedicare.com (www.eHealthMedicare.com)
and PlanPrescriber.com (www.PlanPrescriber.com).